Tuesday, January 12, 2016

Life happens. Jobs change, families grow, kids move-out: no
matter what the reason, you are at a crossroad where you now have to decide on
what to do with the home that you live in. The first reaction is to sell, but
have you considered the possibility of turning your home into another source of
income? The thought of becoming a landlord is scary to most people, but done
correctly, it can bring in an additional $12,000 – 18,000 in yearly passive
income for most homeowners.

There are many instances where renting can be a better
option than selling. Underwater mortgage? Even 7-8 years after the housing
market crash, there are many homeowners that still have mortgage balances
higher than what the home is worth. No need to feel “stuck” in your home – you
can rent your home to a qualified tenant and have the rent cover your monthly
ownership expenses, giving you the freedom to move. On the flip side, maybe you
have a lot of equity in your home and life is simply giving you a reason to
move on. Renting your current home instead of selling can give you additional
income for retirement, paying off debts, or just to have as extra fun money,
all while your home continues to appreciate in value.

Extra income and covering ownership costs sounds great, but
how do you make sure to get a good tenant who is going to pay rent on time and
take good care of the home? Thorough
due-diligence is the best defense against bad tenants. Doing credit checks,
criminal background checks, and rental history checks will give you a very good
idea of the type of tenant that you are going to be dealing with. Spending a
few extra bucks to get detailed credit and background checks done will be
well-worth the money and can give insight into how responsible a potential
tenant has been in the past. If you are looking for a more hands-off and
stress-free approach, it is best to enlist the help of a professional property
manager with experience in your area.

THE BIG IDEA:
Find freedom and extra income in turning your home into an investment property.
Educate yourself, take the time to do proper due-diligence, and enjoy the
financial freedom that a rental property can give you!